Since the market took its worst hit, investors are seen squandering for shelter, trying to liquidate what is left of their investments in the equity market. In these times, a new investment opportunity has been quick to take the position of the hero in the eyes of many investors owing to its profitable stance irrespective of market scenarios. There have been many a times when its interest rate has reduced but its predictability and consistency has become its most alluring factor. Yes, the fixed deposits of public sector banks are the new reliable shoulders and everyone seems to want a piece of them. Amidst all this, asset management companies are taking quite the beating as all investors see the need to carry out just one business transaction with them – redeem their funds. Public sector banks, on the contrary, are seeing quite the opposite reaction, as they are being thwarted with attention from all sides. Investors have begun to see fixed deposits in a new light, as a safe haven where their investments will not be put under the heat any more. The fixed deposits of private sector banks are not enjoying even a quarter of the attention that the fixed deposits of public sector banks are enjoying. This is because private banks are quite susceptible to the market and its moody financial swings.
Although the Government has been taking quite a few steps to calm down edgy investors, the situation seems quite out of control owing to the widespread panic in the market. Measures to inject liquidity in the rigid credit and money market were done essentially to bring peace amongst the investors. But as the market keeps falling lower than earlier, all moves by the Government seem to be wasted on nothing. As apprehension related to the economic meltdown on a global scale continues to rise, there is increased pressure on the stock market to perform. And moreover, it must just not make profit. It must make profit on such a scale that people recover all their lost funds from the market in just one financial blow. Investors are filled with fear that they may need to buy debt like a personal loan or a home loan etc in the eventuality of a financial crash so that they can bridge the gap between their finances and their dreams. While such quick fixes can only be dreamt of as far-fetched or unrealistic dreams, you can choose to invest in funds that are safer and less risky options, the best bet being fixed deposits.
As people continue to shy away from long-term investments like equity, debt-oriented mutual funds have also performed in quite a disappointed manner too, much to the disbelief of investors in the market. If you are willing to make investments in funds for a long period of time, then fixed deposits are definitely the way to go. Although you need to invest the funds for a really long tenure, say 5 to 10 years, they offer assured returns devoid of any risk drama attached unlike other sources of funds. The most encouraging news investors can get at this time is the fact that Indian banks have far outperformed their Western counterparts and investing in them may just be the best financial decision you’ve ever made. If you opt for a longer tenure of investment in your fixed deposit, then you will get an interest rate that is higher than that you might acquire by investing for a comparatively shorter period of time. Make smart and savvy investment decisions by opting for fixed deposits. They aren’t just the safest and most reliable mode of investment for your funds, but they also give the promise of assured returns, thereby exempting any chance of erosion of your much hard-earned funds in the market.